More Stories

Informist, Wednesday, Feb. 25, 2026

By Aaryan Khanna

NEW DELHI – The interbank call money rate ended below the Reserve Bank of India's standing deposit facility rate of 5.00% Wednesday as the systemic liquidity surplus rose, dealers said. Demand for funds from primary dealerships early in the day had driven up the call money rate to near the repo rate of 5.25%, but the comfortable liquidity reduced the volume in the tri-party repo market, they said.

The one-day call rate ended at 4.75%, unchanged from Tuesday's close. The weighted average call rate was 5.08%, slightly lower than 5.10% Tuesday. The weighted average rate in the broader tri-party repo market, which includes mutual funds, was 4.89%, same as on Tuesday.

According to the latest data, the net liquidity absorbed from the banking system by the RBI--a proxy for the liquidity surplus--was INR 2.34 trillion Tuesday, up from INR 1.93 trillion Monday. Dealers attributed the rise in liquidity to inflows through coupon and redemptions of state bonds and a decline in cash balances with the RBI, besides some government spending. There were scheduled inflows worth INR 230 billion through redemption of and coupons on state bonds Tuesday.

"Looks like there was some government spending over the past two days, not bunched up but it was there," a dealer at a state-owned bank said. "We saw that the intensity of demand had fallen quite early today (Wednesday), so pressure on rates is going to go down over the next few days."

OUTLOOK

On Thursday, the one-day call may open below the RBI's repo rate of 5.25% owing to the comfortable liquidity surplus in the banking system. During the day, the call money rate is expected to move in a range of 4.80-5.50%. No major inflows or outflows are expected Thursday, with the government's spending expected to add to banking system liquidity by Friday, dealers said.

CALL RATE

4.75%--Wednesday's close for one-day loans

5.15%--Wednesday's open for one-day loans

4.75%--Tuesday's close for one-day loans

BENCHMARK MIBOR (in %)  

Mumbai Interbank Outright Rates compiled by Financial Benchmarks India:

India Call: Near RBI's SDF rate as systemic liquidity at comfortable level

MUMBAI – The interbank call money rate was near the Reserve Bank of India's Standing Deposit Facility rate of 5.00% Wednesday as liquidity in the banking system was at a comfortable level, dealers said. 

At 0947 IST, the one-day call rate was 5.10%, up from Tuesday's close of 4.75%. The weighted average call rate was 5.15%, compared with 5.10% Tuesday. The weighted average rate in the wider tri-party repo market, which includes mutual funds, was 4.89%, the same as the previous day. 

According to the latest data, the net liquidity absorbed from the banking system by the RBI -- a proxy for the liquidity surplus -- was INR 2.34 trillion Tuesday, up from INR 1.93 trillion Monday. Dealers attributed the rise in liquidity to inflows through coupon and redemptions of state bonds and a decline in cash balances with the RBI. 

There were inflows worth INR 230 billion through redemption and coupons on state bonds, while no outflows from the system were recorded Tuesday. Meanwhile, cash balances with the RBI on Tuesday were INR 7.38 trillion, down from INR 7.43 trillion Monday, against the average daily requirement of INR 7.66 trillion for the fortnight ending Saturday.

"Most market participants are seen on the lending side and so rates are expected to fall below the SDF (rate) later," a dealer at a small finance bank said. Dealers expect the weighted average call rate at 5.05-5.10% for Wednesday.  (J. Navya Sruthi)  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.